Discovery, UMG and Grubman did not respond to requests for comment at the time of publishing. Discovery formed last year through the merger of AT&T’s WarnerMedia unit and Discovery Inc. But due to the depth of the catalog, which dates back decades, the package will likely be seen as an attractive and stable investment for any major music company or private equity fund. The asset valuations will likely be tied to broadcast trends, which are growing slower for film and television than for music. As such, these type of assets have historically trade lower than popular music rights - typically in the single-digit multiples. That’s because relatively few people head to Spotify to stream the soundtracks for Game of Thrones, The White Lotus or Batman, for example, even if the television and film projects are smash successes.
Discovery assets are not tied to the steady growth trend affecting traditional streaming. Unlike most publishing rights or royalty streams, the Warner Bros.
The assets being shopped, including music and production music from the company’s television and film projects, are not the kinds of music rights that have made headlines over the past couple of years as investors have flocked to the music business. Universal Music Group (UMG) already administers the publishing assets, which are likely the largest part of the deal, and Warner Music Group (WMG) distributes WaterTower Music, Warner Bros. Discovery’s current music partners could be potential buyers. While the potential sale - which was first reported by The Financial Times - is still in the very early stages, some of Warner Bros. Phil Collins, Genesis Catalogs Sell to Concord
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